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Nesse v. Sullivan Riehm Construction, LLC

United States District Court, D. Minnesota

June 30, 2017

John Nesse and Tim Mackey as Trustees of the Minnesota Laborers Health and Welfare Fund, Tim Mackey and John Nesse as Trustees of the Minnesota Laborers Pension Fund, Tammy Braastad and Todd Pufahl as Trustees of the Minnesota Laborers Vacation Fund, Todd Pufahl and Fred Chase as Trustees of the Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, Mark Ryan and Dave Borst as Trustees of the Minnesota Laborers Employers Cooperation and Education Trust, the Minnesota Laborers Health and Welfare Fund, the Minnesota Laborers Pension Fund, the Minnesota Laborers Vacation Fund, the Construction Laborers' Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, and the Minnesota Laborers Employers Cooperation and Education Trust, Plaintiffs,
v.
Sullivan Riehm Construction, LLC, Defendant.

          ORDER FOR ENTRY OF JUDGMENT

          DONOVAN W. FRANK United States District Judge.

         This matter was heard before the undersigned on June 30, 2017. Christy E. Lawrie of McGrann Shea Carnival Straughn & Lamb, Chartered, appeared for and on behalf of the Plaintiffs.

         FINDINGS OF FACT

         1. The Amended Complaint was filed with the Court on March 22, 2017.

         2. The Amended Complaint was served on Defendant Sullivan Riehm Construction, LLC (“Sullivan Riehm”) by the Minnesota Secretary of State on March 24, 2017.

         3. Sullivan Riehm failed to file an Answer with the Clerk of Court or serve an appropriate Answer upon the Funds' counsel, and the time allowed by law for Sullivan Riehm to answer the Complaint lapsed.

         4. The Clerk entered default on April 17, 2017.

         5. Plaintiffs are Trustees and fiduciaries of the Minnesota Laborers Health and Welfare Fund, the Minnesota Laborers Pension Fund, the Minnesota Laborers Vacation Fund, the Construction Laborers Education, Training, and Apprenticeship Fund of Minnesota and North Dakota, and the Minnesota Laborers Employers Cooperation and Education Trust (“the Funds”).

         6. The Funds are multi-employer, jointly-trusteed fringe benefit plans created and maintained pursuant to Section 302(c)(5) of the Labor Management Relations Act of 1974 (“LMRA”), as amended 29 U.S.C. § 186(c)(5).

         7. The Funds are administered in accordance with the provisions of the Employee Retirement Income Security Act of 1974, as amended 29 U.S.C. § 1001, et seq. (“ERISA”).

         8. The Funds are exempt from federal taxation pursuant to the Internal Revenue Code.

         9. Sullivan Riehm accepted and agreed to be bound to the terms of a collective bargaining agreement negotiated between the Highway, Railroad, and Heavy Construction Division of the Associated General Contractors of Minnesota and the Laborers' District Council of Minnesota and North Dakota on behalf of its affiliated local Unions covering the period of May 5, 2014 through April 30, 2017. Sullivan Riehm is also bound to the terms of a collective bargaining agreement negotiated between a multi-employer bargaining committee of Landscape contractors and the Laborers' District Council of Minnesota and North Dakota on behalf of its affiliated local Unions, covering the period of May 1, 2014 through April 30, 2017 (“CBAs”).

         10. The CBAs require Sullivan Riehm to contribute every month, not later than the 15th day of the following month, contributions to the Funds in an amount set forth in the CBAs for each hour worked by employees covered by the CBAs.

         11. The CBAs require Sullivan Riehm to accurately report and calculate the contributions due and owing in any given month to the Funds on a remittance report form which must ...


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